Marvell Bets Big on AI Chips for Growth
Hey, so Marvell Tech, you know, the chip company? Theyâre predicting some pretty good stuff for their next few months. They think they're gonna make more money than the experts expected, and it's all thanks to these special chips they make for that whole artificial intelligence thing that's everywhere now. People who run those huge data centers, they're really snapping up these custom AI chips to make their systems bigger and better for AI work. Marvell also mentioned that the demand for their networking chips and those cool electro-optics is looking strong too. It seems like everyone's trying to build up their infrastructure to handle all this AI stuff.
Marvell even said that this whole AI trend isn't going away anytime soon. They expect lots of spending from those big companies with massive data centers, and even some new government projects are popping up that need data centers. Plus, it sounds like companies in emerging markets are getting into the game, which just opens up more chances for Marvell to grow. Did you know their data center business makes up a huge chunk of their total money? Like, 76%! They brought in $1.44 billion from that in just the last few months.
It's also cool that their other businesses, like the ones that deal with carriers and enterprise networks, are starting to bounce back after things were a bit slow. Someone named Angelo Zino, an analyst, thinks these custom chips they make are going to be the main thing driving their growth for the next few years. He even thinks it'll help their profits, even if the profit margin on those particular chips is a bit lower. He also mentioned that Marvell has a webinar coming up on June 17 about these custom chips. Maybe that could show everyone how much bigger the market could get and if they've gotten any new big customers for 2026? Who knows?
Now, not everything is sunshine and rainbows for Marvell. The part of their business that sells to regular folks, like for gaming stuff, was kinda weak. Their money from that fell by almost 30% compared to the previous few months, probably because gaming demand changes with the seasons. Their industrial business also struggled a bit, with revenue dropping. Because of all this, their stock price went down a little bit after hours. Marvell thinks theyâll make around $2 billion for the next few months, which is slightly more than what analysts thought, like around $1.98 billion. Remember back in May, they actually pushed back their investor day conference. They said it was because the economy was a bit unpredictable. The money they made in the last quarter was $1.9 billion, which was also slightly more than what the analysts predicted, around $1.88 billion.
